Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts

Monday, 29 January 2018

Connecting The Digital Dots - Vision, Strategy and Capability

Having worked in a number of global and international organisations, I have come across the received wisdom of National Stereotypes. One of the biggest beleifs that is often propgated is that Americans focus on Vision, Europeans major on Process Performance and Asian Companies prioritise Inoovation and Learning. I never really took this seriously until ISACA commissioned a ddutch academic to research the effectiveness of their COBIT framework.

The report into COBIT effectiveness was based on a survey of over 300 enterprises around the world who had adopted COBIT as their IT management framework (although ISACA would call it a governance framework). The analysis attempted to verify whether there was any correlation between using COBIT and positive outcomes in delivering strategic objectives, i.e. to validate the value. Unfortunately, any linkage was almost none existant. Further reading suggested that it would have been impossible for COBIT to have affected the outcome as most organisations were only using a few of the COBIT processes. It turned out that the organisations had really followed these stereotypes and the American organisations were only using the strategy processes, the Europeans seemed to be only using delivery focused processes and the Asian ones really were only doing innovation and training. 

Further to this, I have seen arguments between European and American attendees at at an International conference over what a Strategy actually contains. It seems that there is a transatlantic split over whether a Strategy should contain a plan or not.

So what does it mean to digitalorganisations and why is it important. Well digital organisations aim to be disruptive and aim to be agile, otherwise they become irrelevant. Yesterday's bright new product will get swamped by today's Me-too Copycats. So an organisation has to join up everything from Understanding the Market, To working out What Happens if you Re-write the Big Rules or assumptions that dominate the Market today (i.e. the disruption), to being able to deliver rapidly, learn from experimentation and perhaps failure, to continuously modify or even pivot the product so that they win and keep dominant positions. Richard Rumelt in Good Strategy Bad Strategy explains the need to diagnose the market, identify a course of action and chose proximate goals. Steve Denning covers Business Agility in a recent article in Forbes.

So this brings me to the Business Model Canvas. This is often touted as a strategic tool for defining your business model. To me it is does not facilitate the outward looking open question type thinking needed to look at the market and identify the New Business Rules and the Opportunities. A SWOT analysis would be better for that. Howvere it is basically a good structure for guided thinking which helps an enterprise think through and communicate what needs to be done to deliver against strategy.

Then there is the Lean Business Model Canvas, an adapted approach. Again it does not do the big outward thinking, but it does start with the Problem to be addressed. So it is useful for a Product Manager and a Product Marketing Manager to enage with the rest of an Integrated Product Team to plan what they are going to do to develop, sell and deliver the product (or even a customer facing set of products) effectively.

Friday, 23 September 2016

It's strategy Jim, but not as we know it ...

A friend of mine who was a leading light in the development of Information Strategy and Architecture practices in the 80s and 90s, retired a few years ago. The key driver being his disillusionment with organisations who said that there was no time for developing strategy.

In the time since then, Enterprise Architecture has enjoyed a considerable re-birth and growth, everything has gone digital and organisations have started to publish strategies which read more like marketing guff expounding bland benefits, than anything which informs the reader or directs action.

A couple of things have brought this to mind recently. the first was that I picked up a copy of Richard Rumelt's "Good Strategy Bad Strategy", in which he emphasises the need for a situation diagnosis of what is needed to succeed, proposing an integrated and coherent policy which addresses this, and a small set of supporting actions. This is a great read and worth while for anyone interested in Business Strategy.

Yesterday, I went to very stimulating talk about post merger integration by Henry McNeill at the British Computer Society. Afterwards as we huddled around the wine and sandwiches, several key themes came out:

  • Many companies are still not aligning acquisition activity with business strategy;
  • There was violent agreement that clarity of the aims, target state and value proposition of an acquisition is imperative for successful integration;
  • Participation of IT from due diligence onwards, provides an ideal opportunity for IT to show how it can help the business articulate and deliver against a strategy for the exploitation of the newly acquired business. Sadly, many organisations are still bringing IT in on Day 1 after deal completion and missing opportunities to mitigate risks and address early integration opportunities quickly. Some still take years to work out what to do with them.
This brings me to the point of today's commentary. My experience has been that almost all business strategies are usually incomplete and fail to unify the senior management of the business. IT needs a coherent exposition of Strategy which identifies the "game changing" opportunities or risks in the business market place to be able to prioritise its investments, define what common capabilities are needed and to support effective innovation. Working with business leaders at C suite and direct report level to "elicit the real business strategy that they work to" and agree the opportunities is valuable to the business as a whole. It's often a great way to get everyone to understand each others problems and can help unify purpose.  However, its got to be continuous to support the ever shifting business environment as businesses go Digital and Agile. Strategy has to take a Fail Early, Refactor and Learn approach to continuously calibrate its diagnosis, unifying policy and action plan. There's a role for the CIO in this.